consent decree - us epa · addressing environmental issues relating to its operations; whereas...

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF INDIANA

EVANSVILLE DIVISION ____________________________________ ) UNITED STATES OF AMERICA ) ) and ) ) STATE OF INDIANA, ) ) Plaintiffs, ) Civil Action No. 3:13-CV-30-RLY-WGH ) v. ) ) COUNTRYMARK REFINING AND ) LOGISTICS, LLC, ) ) Defendant. ) ____________________________________)

CONSENT DECREE

Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 1 of 110 PageID #: 59

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TABLE OF CONTENTS I. JURISDICTION AND VENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 II. APPLICABILITY AND BINDING EFFECT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 III. OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IV. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 V. AFFIRMATIVE RELIEF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 A. NOx Emissions Reductions from the FCCU . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 B. SO2 Emissions Reductions from the FCCU . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 C. NSPS Applicability of the FCCU Catalyst Regenerator . . . . . . . . . . . . . . . . . . . 16 D. NOx Emissions Reductions from Combustion Units . . . . . . . . . . . . . . . . . . . . . 20 E. SO2 Emissions Reductions from and NSPS Applicability to Heaters and Boilers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 F. NSPS Applicability to the Sulfur Recovery Plant . . . . . . . . . . . . . . . . . . . . . . . . 26 G. Emission Reductions from Flares and Control of Flaring Events . . . . . . . . . . . . 28 H. Benzene Waste Operations NESHAP Program Enhancements . . . . . . . . . . . . . 29 I. Leak Detection and Repair Program Enhancements . . . . . . . . . . . . . . . . . . . . . . 41 J. Incorporation of Consent Decree Requirements into Federally Enforceable Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 VI. EMISSION CREDIT GENERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 VII. SUPPLEMENTAL ENVIRONMENTAL PROJECTS . . . . . . . . . . . . . . . . . . . . . . . . . . 56 VIII. REPORTING AND RECORDKEEPING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 IX. CIVIL PENALTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 X. STIPULATED PENALTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 XI. NOTICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77


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XII. INFORMATION COLLECTION AND RETENTION . . . . . . . . . . . . . . . . . . . . . . . . 80 XIII. FORCE MAJEURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 XIV. RETENTION OF JURISDICTION/DISPUTE RESOLUTION . . . . . . . . . . . . . . . . . . 84 XV. EFFECT OF SETTLEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 XVI. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 XVII. TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 XVIII. SIGNATORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 XIX. FINAL JUDGMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101


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TABLE OF APPENDICES A. List of Combustion Units Greater than 40 mmBTU/hr B. Emission Reductions from Flares and Control of Flaring Events Appendices to Appendix B:

C. United States Supplemental Environmental Project

NUMBER DESCRIPTION

1.1 Drawings Illustrating Lower, Center, and Upper Steam Injection in Various Types of Flare Tips 1.2 General Equations

1.3 Calculating NHVcz-limit and NHVcz for Steam-Assisted Flares

1.4 EPA’s Policy on Excess Emissions during Malfunctions, Startup, and Shutdown 1.5 Intentionally Left Blank

1.6 Calculating the Unobstructed Cross Sectional Area of Various Types of Flare Tips 1.7 Depiction of Gases Associated with Steam-Assisted Flares

1.8 Outline of Requirements for the Flare Data and Initial Monitoring Systems Report

1.9 List of Compounds a Gas Chromatograph must be Capable of Speciating

1.10 Equipment and Instrumentation Technical Specifications and Quality Assurance/Quality Control Requirements

1.11 Waste Gas Mapping: Level of Detail Needed to Show Main Headers and Process Unit Headers 1.12 Representations of Discontinuous Wake Dominated Flow

1.13 Calculating the Amount of Stipulated Penalties Due for Violating Limitations on Flaring when the Stipulated Penalties are Based on Excess VOCs and SO2 Emitted

1.14 Determining Refinery-Specific and Industry-Average Complexity through use of the Nelson Complexity Index

1.15 Calculating Sulfur Dioxide Emissions from Reportable Flaring Incidents 2.1 CountryMark’s Form EIA-820 for Report Year 2013


CONSENT DECREE WHEREAS Plaintiff the United States of America (“United States”), by the authority of

the Attorney General of the United States and through its undersigned counsel, acting at the

request and on behalf of the United States Environmental Protection Agency (“EPA”), and

Co-Plaintiff the State of Indiana (“Indiana” or “Co-Plaintiff”), on behalf of the Indiana

Department of Environmental Management (“IDEM”), have contemporaneously filed a

Complaint and lodged this Consent Decree against defendant Countrymark Refining and

Logistics, LLC (“CountryMark” or “Defendant”) for alleged environmental violations at

CountryMark’s petroleum refinery located in Mount Vernon, Indiana (“Refinery” or

“Mt. Vernon Refinery”);

WHEREAS the United States alleges, upon information and belief, that CountryMark has

violated and/or continues to violate the following statutory and regulatory provisions:

a. Prevention of Significant Deterioration (“PSD”) requirements found at Part C of Subchapter I of the Clean Air Act (the “Act” or “CAA”), 42 U.S.C. §§ 7475, and the regulations promulgated thereunder at 40 C.F.R. § 52.21 (the “PSD Rules”) for heaters and boilers and fluid catalytic cracking units for nitrogen oxide (“NOx”) and sulfur dioxide (“SO2”);

b. New Source Performance Standards (“NSPS”) found at 40 C.F.R. Part 60,

Subparts A and J, under Section 111 of the Act, 42 U.S.C. § 7411 (“Refinery NSPS Regulations”), for fuel gas combustion devices and fluid catalytic cracking unit catalyst regenerators; and

c. Leak Detection and Repair (“LDAR”) requirements promulgated pursuant

to Sections 111 and 112 of the Act, and found at 40 C.F.R. Part 60 Subparts VV and GGG; 40 C.F.R. Part 61, Subparts J and V; and 40 C.F.R. Part 63, Subparts F, H, and CC (“LDAR Regulations”).

WHEREAS the United States also specifically alleges with respect to the Refinery that,

upon information and belief, CountryMark has been and/or continues to be in violation of the

state implementation plan (“SIP”) and other state rules and regulations adopted by the State of


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Indiana to the extent that such plans, rules, or regulations implement, adopt or incorporate the

above-described federal requirements;

WHEREAS the United States alleges, upon information and belief, that CountryMark has

violated and/or continues to violate at the Refinery’s Main Flare, the following statutory and

regulatory provisions:

a. The Prevention of Significant Deterioration (“PSD”) requirements found in 42 U.S.C. § 7475 and 40 C.F.R. §§ 52.21(a)(2)(iii) and 52.21(j)–52.21(r)(5);

b. The federally enforceable Minor New Source Review (“Minor NSR”)

requirements adopted and implemented by Indiana in its SIP pursuant to 42 U.S.C. § 7410(a)(2)(C) and 40 C.F.R. §§ 51.160–51.164;

c. The New Source Performance Standards (“NSPS”) promulgated at 40

C.F.R. Part 60, Subparts A, J, VV, VVa, GGG, and GGGa, pursuant to Section 111 of the CAA, 42 U.S.C. § 7411;

d. The National Emission Standards for Hazardous Air Pollutants

(“NESHAPs”) promulgated at 40 C.F.R. Part 63, Subparts A, CC, and UUU, pursuant to Section 112 of the CAA, 42 U.S.C. § 7412;

e. The requirements of Title V of the CAA found at 42 U.S.C. §§ 7661a(a),

7661b(c), 7661c(a); and 40 C.F.R. §§ 70.1(b), 70.5(a) and (b), 70.6(a) and (c), and 70.7(b);

f. The portions of the Title V permits for the Covered Refineries that adopt,

incorporate, or implement the provisions cited in a–d and g; g. The federally enforceable SIP for Indiana that incorporates, adopts, and/or

implements the federal requirements listed in a and c–d; WHEREAS the State of Indiana has joined in this matter alleging violations of its

respective applicable SIP provisions and/or other state rules and regulations incorporating and/or

implementing the foregoing federal requirements;

WHEREAS CountryMark denies that it has violated the foregoing statutory, regulatory,

and SIP provisions and the state and/or local rules and regulations incorporating and


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implementing the foregoing federal requirements, and maintains that it has been and remains in

compliance with all applicable statutes, regulations and permits and is not liable for civil

penalties and injunctive relief as alleged in the Complaint;

WHEREAS the United States is engaged in a federal strategy for achieving cooperative

agreements with petroleum refineries in the United States to achieve across-the-board reductions

in emissions;

WHEREAS CountryMark is a cooperative refinery that processes approximately 27,100

barrels of crude oil per day, is owned by over 100,000 farmers, and serves primarily production

agriculture in the states of Indiana, Illinois and Ohio;

WHEREAS, prior to the Lodging of this Consent Decree, CountryMark undertook a

number of measures intended to reduce air pollution emissions, including but not limited to:

(i) developing a written enhanced LDAR program and implementing it; (ii) introducing SO2

reducing catalyst additives into the FCCU; (iii) introducing Low NOx Combustion Promoter into

the FCCU; (iv) designing and routing the sulfur tank vent to the Sulfur Recovery Plant’s Tail

Gas incinerator; (v) reducing fuel gas H2S content in its fuel gas; (vi) installing a Continuous

Opacity Monitoring System (“COMS”) to monitor opacity from the FCCU; (vii) terminating fuel

oil combustion in heaters and boilers; and (viii) shutting down a boiler;

WHEREAS CountryMark has indicated that it remains committed to proactively

addressing environmental issues relating to its operations;

WHEREAS CountryMark estimates that, including expenditures it already has made, it

will spend a total of approximately $18 million to comply with the requirements of this Consent

Decree.


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WHEREAS, the United States anticipates that the affirmative relief in Section V of this

Consent Decree will reduce emissions of the following pollutants by the following amounts, in

tons per year (“tpy”):

Nitrogen Oxides (“NOx”) 208 Sulfur Dioxide (“SO2”) 777 Volatile Organic Compounds (“VOCs”) 51 Particulate Matter (“PM”) 29 Hazardous Air Pollutants (“HAPs”) 5 The United States also anticipates reductions of carbon monoxide and greenhouse gases.

WHEREAS discussions between the Parties have resulted in the settlement embodied in

the Consent Decree;

WHEREAS CountryMark has waived any applicable federal or state requirements of

statutory notice of the alleged violations;

WHEREAS, notwithstanding the foregoing reservations, the Parties agree that settlement

of the matters set forth in the Complaint (filed herewith) is in the best interests of the Parties and

the public, and entry of the Consent Decree without litigation is the most appropriate means of

resolving this matter;

WHEREAS the Parties recognize, and the Court by entering the Consent Decree finds,

that the Consent Decree has been negotiated at arms length and in good faith and that the

Consent Decree is fair, reasonable, and in the public interest;

NOW THEREFORE, with respect to the matters set forth in the Complaint and in Section

XV of the Consent Decree (“Effect of Settlement”), and before the taking of any testimony,

without adjudication of any issue of fact or law, and upon the consent and agreement of the

Parties to the Consent Decree, it is hereby ORDERED, ADJUDGED and DECREED as follows:


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I. JURISDICTION AND VENUE 1. This Court has jurisdiction over the subject matter of this action and over the

Parties pursuant to 28 U.S.C. §§ 1331, 1345, 1355, and 1367(a). In addition, this Court has

jurisdiction over the subject matter of this action pursuant to Sections 113(b), 167, and 304(a) of

the CAA, 42 U.S.C. §§ 7413(b), 7477, and 7604(a). The Complaint states a claim upon which

relief may be granted for injunctive relief and civil penalties against CountryMark under the

Clean Air Act. The authority of the United States to bring this suit is vested in the United States

Department of Justice pursuant to Sections 113(b) and 305 of the CAA, 42 U.S.C. §§ 7413(b)

and 7605, and pursuant to 28 U.S.C. §§ 516 and 519, and in the State of Indiana pursuant to

Section 304(a) of the CAA, 42 U.S.C. § 7604.

2. Venue is proper in the United States District Court for the Southern District of

Indiana pursuant to Sections 113(b) and 304(c) of the CAA, 42 U.S.C. §§ 7413(b) and 7604(c),

and 28 U.S.C. §§ 1391(b) and (c), and 1395(a). CountryMark consents to the personal

jurisdiction of this Court and waives any objections to venue in this District.

3. The State of Indiana has actual notice of the commencement of this action in

accordance with the requirements of CAA Sections 113(a)(1) and 113(b), 42 U.S.C.

§§ 7413(a)(1) and 7413(b).

II. APPLICABILITY AND BINDING EFFECT 4. The provisions of the Consent Decree shall apply to the Refinery. The provisions

of the Consent Decree shall be binding upon the United States, Indiana, and CountryMark,

including CountryMark’s successors, assigns, and other entities or persons otherwise bound by

law.


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5. Subject to Paragraph 212 (Public Notice and Comment), the Parties agree not to

contest the validity of the Consent Decree in any subsequent proceeding to implement or enforce

its terms.

6. Effective from the Date of Entry of the Consent Decree until its termination,

CountryMark agrees that the Refinery is covered by this Consent Decree. Effective from the

Date of Lodging of the Consent Decree, CountryMark shall give written notice of the Consent

Decree to any successors in interest prior to the transfer of ownership or operation of any portion

of the Refinery and shall provide a copy of the Consent Decree to any successor in interest.

CountryMark shall notify the United States and Indiana in accordance with the notice provisions

set forth in Section XI (Notice), of any successor in interest at least thirty (30) days prior to any

such transfer.

7. CountryMark will condition any transfer, in whole or in part, of ownership of,

operation of, or other interest (exclusive of any non-controlling non-operational shareholder

interest) in, the Refinery upon the execution by the transferee of a modification to the Consent

Decree which makes the terms and conditions of the Consent Decree applicable to the transferee.

As soon as possible prior to the transfer, CountryMark shall notify the United States and Indiana

of the proposed transfer. Simultaneously, CountryMark shall provide a certification from the

transferee that the transferee has the financial and technical ability to assume the obligations and

liabilities under this Consent Decree. By no later than sixty (60) days after the transferee

executes a document agreeing to substitute itself for CountryMark for all terms and conditions of

this Consent Decree, the United States, Indiana, CountryMark, and the transferee shall jointly

file with the Court a motion requesting the Court to substitute the transferee as the Defendant. If

CountryMark does not secure the agreement of the United States and Indiana to a Joint Motion


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within sixty (60) days, then CountryMark and the transferee may file a motion without the

agreement of the United States and Indiana. The United States and Indiana thereafter may file an

opposition to the motion. CountryMark will not be released from the obligations and liabilities

of any provision of this Consent Decree unless and until the Court grants the motion substituting

the transferee as the Defendant to those provisions.

8. Except as provided in Paragraph 7, CountryMark shall be solely responsible for

ensuring that performance of the work required under this Consent Decree is undertaken in

accordance with the deadlines and requirements contained in this Consent Decree and the

Appendices. CountryMark shall provide a copy of the applicable provisions of this Consent

Decree to each consulting or contracting firm that is retained to perform work required under

Section V and/or Appendix B of this Consent Decree, upon execution of any contract relating to

such work. No later than thirty (30) days after the Date of Entry of the Consent Decree,

CountryMark also shall provide a copy of the applicable provisions of this Consent Decree to

each consulting or contracting firm that CountryMark already has retained to perform the work

required under Section V and/or Appendix B of this Consent Decree. Copies of the Consent

Decree do not need to be supplied to firms who are retained to supply materials or equipment to

satisfy requirements under this Consent Decree.

III. OBJECTIVES 9. It is the purpose of the Parties in this Consent Decree to further the objectives of

the federal Clean Air Act, the Indiana air pollution control laws, and the rules and regulations

promulgated under these statutes.


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IV. DEFINITIONS 10. Unless otherwise defined herein, terms used in the Consent Decree shall have the

meaning given to those terms in the Clean Air Act and the implementing regulations

promulgated thereunder. The following terms used in the Consent Decree will be defined for

purposes of the Consent Decree and the reports and documents submitted pursuant thereto as

follows:

a. “7-day rolling average” shall mean the average daily emission rate or

concentration during the preceding 7 days. For purposes of clarity, the first day used in a 7-day

rolling average compliance period is the first day on which the emissions limit is effective and

the first complete 7-day average compliance period is 7 days later (e.g., for a limit effective on

January 1, the first day in the period is January 1 and the first complete 7-day period is January 1

through January 7).

b. “365-day rolling average” shall mean the average daily emission rate or

concentration during the preceding 365 days. For purposes of clarity, the first day used in a

365-day rolling average compliance period is the first day on which the emissions limit is

effective and the first complete 365-day average compliance period is 365 days later (e.g., for a

limit effective on January 1, the first day in the period is January 1 and the first complete

365-day period is January 1 through December 31).

c. “12-month rolling average” shall mean the sum of the average rate or

concentration of the pollutant in question for the most recent complete calendar month and each

of the previous 11 calendar months, divided by 12. A new 12-month rolling average shall be

calculated for each new complete month. For purposes of clarity, the first month used in a

12-month rolling average compliance period is the first full calendar month in which the


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emission limits is effective, and the first complete 12-month rolling average compliance period is

12 calendar months later (e.g., for a limit effective on December 31, the first month in the period

is January and the first complete 12-month period is January through the following December).

d. “Calendar Quarter” shall mean any one of the three month periods ending

on March 31st, June 30th, September 30th, and December 31st.

e. “CEMS” shall mean a continuous emissions monitoring system.

f. “CO” shall mean carbon monoxide.

g. “Combustion Units” shall mean the heaters and boilers at the Refinery that

are listed in Appendix A.

h. “Consent Decree” or “Decree” or “CD” shall mean this Consent Decree,

including any and all Appendices attached to the body of this Consent Decree.

i. “Co-Plaintiff” or “Indiana” shall mean the State of Indiana on behalf of

the Indiana Department of Environmental Management.

j. “CountryMark” shall mean Countrymark Refining and Logistics, LLC,

and its successors and assigns.

k. “Current Generation Ultra-Low NOx Burners” shall mean those burners

that are designed to achieve a NOx emission rate of 0.020 to 0.040 lb NOx/mmBTU (HHV)

when firing natural gas at 3% stack oxygen at full design load without air preheat, even if upon

installation actual emissions exceed 0.040 lb NOx/mmBTU (HHV).

l. “Date of Entry of the Consent Decree” or “Date of Entry” shall mean the

date the Consent Decree is entered by the United States District Court for the Southern District

of Indiana.


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m. “Date of Lodging of the Consent Decree” or “Date of Lodging” or “DOL”

shall mean the date the Consent Decree is filed for lodging with the Clerk of the Court for the

United States District Court for the Southern District of Indiana.

n. “Day” or “Days” as used herein shall mean a calendar day or days.

o. “EPA” shall mean the United States Environmental Protection Agency

and any of its successors departments or agencies.

p. “FCCU” shall mean the fluidized catalytic cracking unit and its

regenerator that CountryMark owns and/or operates at the Mt. Vernon Refinery.

q. “Fuel Oil” shall mean any liquid fossil fuel with a sulfur content of greater

than 0.05% by weight.

r. “IDEM” shall mean the Indiana Department of Environmental

Management and any successor departments or agencies of the State of Indiana.

s. “Malfunction” shall mean, as specified in 40 C.F.R. Part 60.2, “any

sudden, infrequent, and not reasonably preventable failure of air pollution control equipment,

process equipment, or a process to operate in a normal or usual manner. Failures that are caused

in part by poor maintenance or careless operation are not Malfunctions.”

t. “Month”:

i. Whenever this Consent Decree requires compliance “within” or “by no later than” a certain number of “Months” after a specific date or event, the compliance obligation commences on the anniversary of the numerical date of that specific date or event. For example, if compliance is required by no later than six Months after the Effective Date of this Decree, and if the Effective Date of this Decree is December 6, 2012, then the compliance obligation commences on June 6, 2013.

ii. “Month” or “monthly” for any purpose other than that identified in

Subparagraph 10.t.i shall mean calendar month.


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u. “Natural Gas Curtailment” shall mean a restriction imposed by a natural

gas supplier limiting CountryMark’s ability to obtain or use natural gas.

v. “Next Generation Ultra-Low NOx Burners” or “Next Generation ULNBs”

shall mean those burners that are designed to achieve a NOx emission rate of less than or equal

to 0.020 lb NOx/mmBTU (HHV) when firing natural gas at 3% stack oxygen at full design load

without air preheat, even if upon installation actual emissions exceed 0.020 lb NOx/mmBTU

(HHV).

w. “NOx” shall mean nitrogen oxides.

x. “Paragraph” shall mean a portion of this Consent Decree identified by an

Arabic numeral.

y. “Parties” shall mean the United States, Indiana, and CountryMark.

z. “PM” shall mean particulate matter as measured by 40 CFR Part 60,

Appendix A, Method 5B or 5F.

aa. “Refinery” or “Mt. Vernon Refinery” shall mean the Refinery owned and

operated by CountryMark in Mt. Vernon, Indiana, which is subject to the requirements of this

Consent Decree.

bb. “Selective Catalytic Reduction” or “SCR” shall mean an air pollution

control device consisting of ammonia injection and a catalyst bed to selectively catalyze the

reduction of NOx with ammonia to nitrogen and water.

cc. “Selective Non-Catalytic Reduction” or “SNCR” shall mean an air

pollution control device consisting of a reactant injection system using ammonia or urea to

selectively reduce NOx to nitrogen and water and may include an enhanced reactant such as

hydrogen.


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dd. “Shutdown,” as specified in 40 C.F.R. Section 60.2, shall mean the

cessation of operation of an affected facility for any purpose.

ee. “SO2” shall mean sulfur dioxide.

ff. “Startup,” as specified in 40 C.F.R. Section 60.2, shall mean the setting in

operation of an affected facility for any purpose.

gg. “Sulfur Recovery Plant” or “SRP” shall mean a process unit that recovers

sulfur from hydrogen sulfide by a vapor phase catalytic reaction of sulfur dioxide and hydrogen

sulfide.

hh. “Sulfur Recovery Unit” or “SRU” shall mean a single component of a

Sulfur Recovery Plant, commonly referred to as a Claus train.

ii. “Tail Gas” shall mean exhaust gas from the Claus trains and the tail gas

unit (“TGU”) section of the SRP.

jj. “Tail Gas Unit” or “TGU” shall mean a control system utilizing a

technology for reducing emissions of sulfur compounds from a Sulfur Recovery Plant.

kk. “Torch Oil” shall mean FCCU feedstock or cycle oils that are combusted

in the FCC regenerator to assist in starting up or restarting the FCCU, to allow hot standby of the

FCCU, or to maintain regenerator heat balance in the FCCU.

ll. “Upstream Process Units” shall mean all amine contactors, amine

regenerators, and sour water strippers at the Refinery, as well as all process units at the Refinery

that produce gaseous or aqueous waste streams that are processed at amine contactors, amine

scrubbers, or sour water strippers.


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V. AFFIRMATIVE RELIEF A. NOx Emissions Reductions from the FCCU 11. Emission Limits. By no later than the Date of Entry, CountryMark shall comply

with the following NOx emission limits at the FCCU:

a. Short-term: 50 ppmvd @ 0% O2 on a 7-day rolling average basis b. Long-term: 30 ppmvd @ 0% O2 on a 365-day rolling average basis 12. Effect of Startup, Shutdown, and Malfunction on NOx Emission Limits. NOx

emissions during periods of Startup, Shutdown, or Malfunction of the FCCU or during periods of

Malfunction of the FCCU’s catalyst additive system shall not be used in determining compliance

with the short-term limit in Subparagraph 11.a, provided that during such periods, CountryMark

implements good air pollution control practices as required by 40 C.F.R. § 60.11(d) to minimize

NOx emissions. NOx emissions during periods of Startup, Shutdown, or Malfunction shall be

used in determining compliance with the long-term limit in Subparagraph 11.b. Nothing in this

Paragraph shall be construed to relieve CountryMark of any obligation under any federal, state,

or local law, regulation, or permit to report emissions during periods of Startup, Shutdown, or

Malfunction; to comply with emissions limits applicable during periods of Startup, Shutdown, or

Malfunction; or to document the occurrence and/or cause of a Startup, Shutdown, or Malfunction

event. Emissions during any such period of Startup, Shutdown, or Malfunction shall be

monitored with a CEMS as provided by Paragraph 13.

13. Demonstrating Compliance with FCCU NOx Emission Limits. Prior to the Date

of Lodging, CountryMark installed NOx and O2 CEMS. Beginning no later than the Date of

Entry, CountryMark shall use the NOx and O2 CEMS to demonstrate compliance with the NOx

emission limits established pursuant to Paragraph 11. CountryMark shall make CEMS data


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available to EPA and IDEM upon demand as soon as practicable. CountryMark shall certify,

calibrate, maintain, and operate the CEMS required by this Paragraph in accordance with the

provisions of 40 C.F.R. § 60.13 that are applicable to CEMS (excluding those provisions

applicable only to Continuous Opacity Monitoring Systems) and Part 60 Appendices A and F,

and the applicable performance specification test of 40 C.F.R. Part 60 Appendix B. However,

unless Appendix F is required by the NSPS, state law or regulation, or a permit or approval, in

lieu of the requirements of 40 C.F.R. Part 60, Appendix F §§ 5.1.1, 5.1.3, and 5.1.4,

CountryMark may conduct: (1) either a Relative Accuracy Audit (“RAA”) or a Relative

Accuracy Test Audit (“RATA”) once every three (3) years; and (2) a Cylinder Gas Audit

(“CGA”) each calendar quarter in which a RAA or RATA is not performed. If the CEMS must

be moved because of the installation of control equipment, CountryMark shall promptly reinstall,

re-calibrate, and re-certify the CEMS.

B. SO2 Emissions Reductions from the FCCU 14. Emission Limits. By no later than the Date of Entry, CountryMark shall comply

with the following SO2 emission limits at the FCCU:

a. Short-term: 50 ppmvd @ 0% O2 on a 7-day rolling average basis. b. Long-term: 25 ppmvd @ 0% O2 on a 365-day rolling average basis. 15. Effect of Malfunction on SO2 Emission Limits. SO2 emissions during periods of

Malfunction of the FCCU catalyst additive system shall not be used in determining compliance

with the short-term limit in Subparagraph 14.a, provided that during such periods, CountryMark

implements good air pollution control practices as required by 40 C.F.R. § 60.11(d) to minimize

SO2 emissions. SO2 emissions during periods of Startup, Shutdown, or Malfunction shall be

used in determining compliance with the long-term limit in Subparagraph 14.b. Nothing in this


15


or local law, regulation, or permit to report emissions during periods of Malfunction, to comply

with emissions limits applicable during periods of Malfunction, or to document the occurrence

and/or cause of a Malfunction. Emissions during any such period of Malfunction shall be

monitored with CEMS as provided by Paragraph 16.

16. Demonstrating Compliance with FCCU SO2 Emission Limits. Prior to the Date

of Lodging, CountryMark installed SO2 and O2 CEMS. Beginning no later than the Date of

Entry, CountryMark shall use the SO2 and O2 CEMS to demonstrate compliance with the SO2

emission limits established pursuant to Paragraph 14. CountryMark shall make CEMS data














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C. NSPS Applicability of the FCCU Catalyst Regenerator 17. NSPS Subparts A and J Applicability Dates. a. Sulfur Dioxide and Carbon Monoxide. By no later than the Date of Entry,

with respect to SO2 and CO, the FCCU catalyst regenerator shall be an “affected facility” as that

term is used in the Standards of Performance for New Stationary Sources (“NSPS”) found at 40

C.F.R. Part 60, Subparts A and J, and shall be subject to and comply with the requirements in

Subparts A and J, including all monitoring, recordkeeping, reporting, and operating

requirements.

b. Particulate Matter.

i. Notice to EPA. By no later than June 30, 2014, CountryMark shall notify EPA of one of the following: (1) its decision to continue to operate the current FCCU; (2) its decision to cease operating the current FCCU and not replace it with another FCCU; or (3) its decision to partially or wholly replace or revamp the current FCCU.

ii. Consequences of CountryMark’s Decision.

(1) If CountryMark notifies EPA of (1), then by no later than

December 31, 2016, with respect to particulate matter (“PM”), the FCCU catalyst regenerator shall be an “affected facility” as that term is used in the NSPS and shall be subject to and comply with the requirements in Subparts A and J, including all monitoring, recordkeeping, reporting, and operating requirements;


December 31, 2017, CountryMark shall cease operating the FCCU. CountryMark shall surrender to the State of Indiana all permits that deal exclusively with the FCCU. For all permits that deal with units in addition to the FCCU, CountryMark shall seek from the State of Indiana a modification of these permits that eliminates authorization to operate the FCCU.


December 31, 2017, the FCCU catalyst regenerator that is


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operational at the Refinery on that date shall be an “affected facility” as that term is used in the NSPS and shall be subject to and comply with the requirements in Subparts A and J, including all monitoring, recordkeeping, reporting, and operating requirements.

18. Consequences of an FCCU Modification or Reconstruction During Pendency of this Consent Decree. a. FCCU Modification. If prior to the termination of this Consent Decree,

the FCCU becomes subject to 40 C.F.R. Part 60, Subpart Ja, for a particular pollutant due to a

“modification” (as that term is defined in NSPS Subpart A), the modified affected facility shall

be subject to and comply with Subpart Ja, in lieu of Subpart J, for that regulated pollutant to

which a standard applies as a result of the modification.

b. FCCU Reconstruction. If prior to the termination of this Consent Decree,

the FCCU becomes subject to 40 C.F.R. Part 60, Subpart Ja, due to a “reconstruction” (as that

term is defined in NSPS Subpart A), the reconstructed FCCU shall be subject to and comply with

Subpart Ja for all pollutants in lieu of Subpart J.

19. Optional PM Limit Under NSR/PSD Requirements. At any time during the term

of the Consent Decree, CountryMark may accept a final PM limit of 0.5 pounds of PM per 1000

pounds of coke burned on a 3-hour average basis. If CountryMark accepts such a limitation,

liability for potential Prevention of Significant Deterioration violations for PM emissions from

the FCCU shall be resolved pursuant to Paragraph 187, provided that such limits are

incorporated into an appropriate permit under Paragraph 108.

20. Effect of Startup, Shutdown, and Malfunction on PM Emission Limits. PM

emissions during periods of Startup, Shutdown, or Malfunction of the FCCU or during periods of

Malfunction of the PM control device, will not be used in determining compliance with the

emission limit of 1.0 pound of PM per 1000 pounds of coke burned on a 3-hour average basis,


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or, if elected pursuant to Paragraph 19, an emission limit of 0.5 pound of PM per 1000 pounds of

coke burned on a 3-hour average basis, provided that during such periods CountryMark

implements good air pollution control practices to minimize PM emissions. Nothing in this


or local law, regulation, or permit to report emissions during periods of Startup, Shutdown, or

Malfunction; to comply with emissions limits applicable during periods of Startup, Shutdown, or

Malfunction; or to document the occurrence and/or cause of a Startup, Shutdown, or Malfunction

event.

21. Effect of Startup, Shutdown, and Malfunction on CO Emission Limits. CO

emissions during periods of Startup, Shutdown, or Malfunction of the FCCU will not be used in

determining compliance with the emission limit of 500 ppmvd CO at 0% O2 on a 1-hour average

basis, provided that during such periods CountryMark implements good air pollution control

practices to minimize CO emissions. Nothing in this Paragraph shall be construed to relieve

CountryMark of any obligation under any federal, state, or local law, regulation, or permit to

report emissions during periods of Startup, Shutdown, or Malfunction; to comply with emissions

limits applicable during periods of Startup, Shutdown, or Malfunction; or to document the

occurrence and/or cause of a Startup, Shutdown, or Malfunction event.

22. Demonstrating Compliance with PM Emission Limits. CountryMark shall follow

the test protocol specified in 40 C.F.R. § 60.106(b)(2) to measure PM emissions from the FCCU.

CountryMark shall propose and submit the test protocol to EPA for approval, with a copy to

Co-Plaintiff, by no later than three months after the PM limit becomes effective. CountryMark

shall conduct the first test no later than six months after the PM limit becomes effective.

Thereafter, CountryMark shall conduct annual stack tests by December 31 of each calendar year


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and will submit the results of each test in the first report due under Section VIII (Reporting and

Recordkeeping) that is at least three months after the test. Upon demonstrating through at least

three (3) annual tests that the PM limit is not being exceeded at the Refinery FCCU,

CountryMark may request EPA approval to conduct tests under this Consent Decree less

frequently than annually. Such approval will not be unreasonably withheld. At the termination

of this Consent Decree, the frequency of testing then in effect shall be incorporated into the

relevant permit, in accordance with Subsection V.J of this Decree. After termination, IDEM may

require more or less frequent testing as it deems appropriate.

23. Demonstrating Compliance with CO Emission Limits. Prior to the Date of

Lodging, CountryMark installed CO and O2 CEMS. Beginning no later than the Date of Entry,

CountryMark shall use the CO and O2 CEMS to demonstrate compliance with the NSPS CO

emission limit applicable as set forth in Paragraph 17. CountryMark shall make CEMS data












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24. Opacity Monitoring at the FCCU. Prior to the Date of Lodging, CountryMark

installed a Continuous Opacity Monitoring System (“COMS”) to monitor opacity at the FCCU.

Beginning no later than the Date of Entry, CountryMark shall use the COMS to demonstrate

compliance with the NSPS opacity limit at 40 C.F.R. § 60.102(a)(2). CountryMark shall make

COMS data available to EPA and IDEM upon demand as soon as practicable. CountryMark

shall certify, calibrate, maintain, and operate the COMS required by this Consent Decree in

accordance with 40 C.F.R. §§ 60.11, 60.13 and Part 60, Appendix A, and the applicable

performance specification test of 40 C.F.R. Part 60, Appendix B.

25. Entry of this Consent Decree Satisfies Certain NSPS Requirements. Entry of this

Consent Decree and compliance with the relevant monitoring requirements of this Consent

Decree for the FCCU shall satisfy the notice requirements of 40 C.F.R. § 60.7(a) and the initial

performance test requirement of 40 C.F.R. § 60.8(a).

D. NOx Emissions Reductions from Combustion Units 26. Installation of Qualifying Controls for NOx Emissions from Combustion Units.

The following serve as “Qualifying Controls” to satisfy the requirements of Paragraphs 27 and

30:

a. SCR or SNCR; b. Current Generation or Next Generation Ultra-Low NOx Burners; c. Other technologies that CountryMark demonstrates to EPA’s satisfaction

will reduce NOx emissions to 0.040 lb/mmBTU or lower; or d. Permanent shutdown of a Combustion Unit with surrender of its operating

permit.


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27. NOx Reductions Required. On or before December 31, 2017, CountryMark shall

use Qualifying Controls to reduce NOx emissions from the Combustion Units listed in

Appendix A by at least 68 tons per year so as to satisfy the following inequality:

n ∑ [ (Eactual)i - (Eallowable)i] ≥ 68 tons of NOx per year i = 1 Where: (Eallowable)i = [(The permitted allowable pounds of NOx per million BTU for Combustion Unit i/(2000 pounds per ton)] x [(the lower of permitted or maximum heat input rate capacity in million BTU per hour for Combustion Unit i) x (the lower of 8760 or permitted hours per year)]; (EActual)i = The tons of NOx per year prior actual emissions during the refinery baseline years (unless prior actual emissions exceed allowable emissions, then use allowable) as shown in Appendix A for each Combustion Unit listed in Appendix A; and n = The number of Combustion Units with Qualifying Controls from those listed in Appendix A that are selected by CountryMark to satisfy the requirements of the equation set forth in this Paragraph of this Consent Decree. Pursuant to Subsection V.J of this Consent Decree, CountryMark shall apply for federally

enforceable permits that incorporate emission limits (in lbs/mmBTU) for Combustion Units

required under this Paragraph, to ensure that the NOx emission reduction requirements imposed

by this Subsection V.D shall survive the termination of this Consent Decree. Permit limits

established to implement this Paragraph may use a 365-day rolling average for Combustion

Units that use a CEMS to monitor compliance. For Combustion Units that do not use a CEMS,

the permit limit averaging period must be no longer than the averaging period of the reference

test method.


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28. Baseline Information. Appendix A to this Consent Decree lists the Combustion

Units at the Refinery that are greater than 40mmBTU/hr and provides the following information

about each of them:

a. The maximum physical heat input capacity in mmBTU/hr (HHV); b. The allowable heat input capacity in mmBTU/hr (HHV), if different from

the maximum physical heat input capacity; c. The baseline emissions rate for the agreed-upon baseline calendar years in

lb/mmBTU (HHV) and tons per year; d. The type of data used to derive the emissions estimate (i.e., emission

factor, stack test, or CEMS data); and e. The utilization rate in annual average mmBTU/hr (HHV) for 2007/2008.

29. NOx Control Plan. Prior to the Date of Lodging, CountryMark submitted a

detailed NOx control plan (“NOx Control Plan”) to EPA for review and comment. CountryMark

shall update its NOx Control Plan on an annual basis in the semi-annual report due under

Section VIII of this Decree on July 31 of each year, commencing in 2013 and continuing until

termination of this Consent Decree. The update shall cover the prior calendar year. The updates

will describe the achieved and anticipated progress of the NOx emissions reductions program for

the Combustion Units and will contain the following information for each Combustion Unit that

CountryMark plans to use to satisfy the requirements of Paragraphs 27 and 30:

a. All of the information in Appendix A; b. Identification of the type of Qualifying Controls installed or planned with

date installed or planned (including identification of the Combustion Units to be permanently shut down);

c. To the extent limits exist or are planned, the allowable NOx emission rates

(in lbs/mmBTU (HHV), with averaging period) and allowable heat input rate (in mmBTU/hr (HHV)) obtained or planned with dates obtained or planned;


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d. The results of emissions tests conducted and, if applicable, annual average CEMS data collected (reported in ppmvd corrected to 3% O2, lbs/mmBTU and in tons per year), pursuant to Paragraph 31; and

e. The amount in tons per year applied to or to be applied toward satisfying

Paragraph 27. Appendix A and the NOx Control Plan updates required by this Paragraph will be for

informational purposes only and may contain estimates. They will not be used to develop permit

requirements or other operating restrictions. CountryMark may change any projections, plans, or

information that is included in the Control Plan updates. Nothing in this Paragraph will affect

any requirements for the development or submission of a NOx control plan pursuant to otherwise

applicable state or local law.

30. By December 31, 2014, CountryMark will install sufficient Qualifying Controls

and have applied for emission limits from IDEM sufficient to achieve two-thirds of the NOx

emission reductions required by Paragraph 27. In the semi-annual report due on July 31, 2015,

CountryMark will provide EPA and IDEM with a report showing how it satisfied the

requirements of this Paragraph.

31. Except for any Combustion Unit for which the Qualifying Control is a permanent

shutdown as identified in Subparagraph 26.d, beginning no later than one-hundred eighty (180)

days after installing Qualifying Controls on and commencing operation of a Combustion Unit

that will be used to satisfy the requirements of Paragraph 27, CountryMark will monitor the

Combustion Units as follows:

a. For Combustion Units with a maximum physical capacity greater than 100 mmBTU/hr (HHV), install or continue to operate a NOx CEMS;

b. For Combustion Units with a maximum physical capacity of less than or

equal to 100 mmBTU/hr (HHV), conduct an initial performance test and any periodic tests that may be required by EPA or by IDEM under other


24

applicable regulatory authority. The results of the initial performance testing will be reported to EPA and IDEM.

CountryMark will use Method 7E of 40 C.F.R. Part 60, Appendix A-4 (or a test method made

applicable by a future, final EPA regulation) to conduct initial performance testing for NOx

emissions required by Subparagraph 31.b. Units with Qualifying Controls installed before the

Date of Entry that are subject to this Paragraph will comply with this Paragraph by no later than

July 31, 2013.

32. CountryMark will certify, calibrate, maintain, and operate any NOx CEMS

required by Paragraph 31.a in accordance with the provisions of 40 C.F.R. § 60.13 that are

applicable to CEMS (excluding those provisions applicable only to Continuous Opacity

Monitoring Systems) and Part 60 Appendices A and F, and the applicable performance

specification test of 40 C.F.R. Part 60 Appendix B. However, unless Appendix F is required by

the NSPS, state law or regulation, or a permit or approval, in lieu of the requirements of 40

C.F.R. Part 60, Appendix F §§ 5.1.1, 5.1.3, and 5.1.4, CountryMark may conduct: (1) either a

Relative Accuracy Audit (“RAA”) or a Relative Accuracy Test Audit (“RATA”) once every

three (3) years; and (2) a Cylinder Gas Audit (“CGA”) each calendar quarter in which a RAA or

RATA is not performed. If the CEMS must be moved because of the installation of control

equipment, CountryMark shall promptly reinstall, re-calibrate, and re-certify the CEMS.

33. The requirements of this Section V.D. do not exempt CountryMark from

complying with any and all federal, state, regional, and local requirements that may require

technology, equipment, monitoring, or other upgrades based on actions or activities occurring

after the Date of Lodging of this Consent Decree, or based upon new or modified regulatory,

statutory, or permit requirements.


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34. CountryMark will retain all records required to support its reporting requirements

under this Section V.D. until termination of the Consent Decree. CountryMark will submit such

records to EPA and IDEM upon request.

E. SO2 Emissions Reductions from and NSPS Applicability to Heaters and Boilers

35. NSPS Applicability. By no later than December 31, 2014, all heaters and boilers

at the Refinery shall be “affected facilities” as that term is used in the NSPS at 40 C.F.R. Part 60,

Subparts A and J, and shall be subject to and comply with the requirements of Subparts A and J

for fuel gas combustion devices, including all monitoring, recordkeeping, reporting, and

operating requirements.

36. Consequences of a Modification or Reconstruction During Pendency of this

Consent Decree.

a. Modification of a heater or boiler. If prior to the termination of this

Consent Decree, a heater or boiler becomes subject to 40 C.F.R. Part 60, Subpart Ja, for SO2 due

to a “modification” (as that term is defined in NSPS Subpart A), the modified affected facility

shall be subject to and comply with Subpart Ja, in lieu of Subpart J, for SO2.

b. Reconstruction of a heater or boiler. If prior to the termination of this

Consent Decree, a heater or boiler becomes subject to 40 C.F.R. Part 60, Subpart Ja, due to a

“reconstruction” (as that term is defined in NSPS Subpart A), the reconstructed affected facility

shall be subject to and comply with Subpart Ja for all pollutants in lieu of Subpart J.



Decree for the heaters and boilers shall satisfy the notice requirements of 40 C.F.R. § 60.7(a) and

the initial performance test requirement of 40 C.F.R. § 60.8(a).


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38. Elimination of Fuel Oil Burning.

a. Existing Combustion Devices. By no later than the Date of Entry,

CountryMark shall not burn Fuel Oil in any existing combustion device at the Refinery except

during periods of Natural Gas Curtailment, Test Runs, or operator training. Nothing in this

prohibition limits CountryMark’s ability to burn Torch Oil in an FCCU regenerator to assist in

starting, restarting, maintaining hot standby, or maintaining regenerator heat balance.

b. Combustion Devices Constructed After Lodging. After the Date of

Lodging, CountryMark will not construct any new combustion device at the Refinery that burns

Fuel Oil unless the air pollution control equipment controlling the combustion device either:

(i) has an SO2 control efficiency of 90% or greater; or (ii) achieves an SO2 concentration of

20 ppm or less at 0% O2 on a 3-hour rolling average basis. Nothing in this Paragraph will

exempt CountryMark from securing all necessary permits before constructing a new combustion

device.

F. NSPS Applicability to the Sulfur Recovery Plant

39. NSPS Applicability. By no later than June 30, 2013, the Refinery’s Sulfur

Recovery Plant (“SRP”) shall be an “affected facility” as that term is used in the NSPS at 40

C.F.R. Part 60, Subparts A and Ja, and shall be subject to and comply with the requirements of

Subparts A and Ja, including all monitoring, recordkeeping, reporting, and operating

requirements.

40. Compliance with NSPS Emission Limits. On and after the date of NSPS

applicability for the Refinery’s SRP, CountryMark shall, for all periods of operation of the SRP,

comply with 40 C.F.R. § 60.102a(f)(2)(i), except during periods of Startup, Shutdown or

Malfunction of the SRP or Malfunction of the Tail Gas Unit.


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41. Compliance with NSPS Operation and Maintenance Requirements. At all times

on and after the date of NSPS applicability for the SRP, including periods of Startup, Shutdown,

and Malfunction, CountryMark shall, to the extent practicable, operate and maintain the SRP and

associated air pollution control equipment in a manner consistent with good air pollution control

practices for minimizing emissions pursuant to 40 C.F.R. § 60.11(d).

42. Elimination, Control, and/or Inclusion in Monitoring of Sulfur Tank Emissions.

By no later than the Date of Entry, for the Refinery’s SRP, CountryMark will either eliminate,

control, and/or include and monitor as part of a the SRP’s emissions, all sulfur tank emissions at

the Refinery.

43. Monitoring all Emissions Points and Installing CEMS. By no later than the Date

of Entry, CountryMark will monitor all Tail Gas emission points (stacks) to the atmosphere from

the Refinery’s SRP and will install and operate an NSPS-compliant CEMS in accordance with

NSPS Subpart Ja.



Decree for the SRP shall satisfy the notice requirements of 40 C.F.R. § 60.7(a) and the initial

performance test requirement of 40 C.F.R. § 60.8(a).

45. Preventive Maintenance and Operation Plans for SRP, TGU, other control

devices, and Upstream Process Units. By no later than one year after the Date of Entry of the

Consent Decree, CountryMark shall submit to EPA and IDEM, a Plan for Maintenance and

Operation (“PMO”) of its SRP, the associated Tail Gas Unit (“TGU”), any supplemental control

devices, and the Upstream Process Units for the Refinery. The Plan shall identify actions to

promote continuous operation of the SRP between scheduled maintenance turnarounds for


28

minimization of emissions from the SRP. Such Plan shall include, but not be limited to sulfur

shedding procedures, Startup and Shutdown procedures, hot standby procedures, emergency

procedures, and schedules to coordinate maintenance turnarounds of its SRP Claus train and

TGU to coincide with scheduled turnarounds of major Upstream Process Units. CountryMark

shall comply with the PMO at all times, including periods of Startup, Shutdown, and

Malfunction of the SRP or Malfunction of the TGU. CountryMark will modify the PMO as

needed to continue to enhance operation and maintenance of the SRP, TGU, supplemental

control devices, and Upstream Process Units as new equipment is installed,

changes/improvements in procedures to minimize Acid Gas Flaring Incidents and/or SO2

emissions are identified, and/or other changes occur at the Refinery. Any modifications made by

CountryMark to the PMO will be identified in each January 31 report due under Section VIII of

this Decree.

46. EPA and IDEM do not, by their review of the PMO Plan and/or by their failure to

comment on the PMO Plan, warrant or aver in any manner that any of the actions that

CountryMark may take pursuant to the PMO Plan will result in compliance with the provisions

of the Clean Air Act or any other applicable federal, state, regional, or local law or regulations.

Notwithstanding the review of the PMO Plan by the EPA and IDEM, CountryMark will remain

solely responsible for compliance with the Clean Air Act, the applicable state/local acts, and

such other laws and regulations.

G. Emission Reductions from Flares and Control of Flaring Events

47. CountryMark shall comply with the requirements of Appendix B to reduce

emissions from flares and control flaring events.


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H. Benzene Waste Operations NESHAP Program Enhancements

48. In addition to continuing to comply with all applicable requirements of 40 C.F.R.

Part 61, Subpart FF (“Benzene Waste Operations NESHAP” or “BWON” or “Subpart FF”),

CountryMark agrees to undertake, at the Refinery, the measures set forth in this Section V.H. to

ensure continuing compliance with Subpart FF and to minimize or eliminate fugitive benzene

waste emissions.

49. Current Compliance Status. CountryMark has reported a Total Annual Benzene

(“TAB”) of less than 10 Mg/yr at the Refinery.

50. Refinery Compliance Status Changes. If at any time from the Date of Entry of the

Consent Decree through its termination, the Refinery is determined to have a TAB equal to or

greater than 10 Mg/yr, CountryMark shall utilize the compliance option known as “6 BQ” found

at 40 C.F.R. § 61.342(e). CountryMark shall consult with EPA and IDEM before making any

change in compliance strategy. All changes must be undertaken in accordance with the

regulatory provisions of the Benzene Waste Operations NESHAP.

51. One-Time Review and Verification of the Refinery’s TAB: Phase One of the

Review and Verification Process. By no later than one year after the Date of Entry of the

Consent Decree, CountryMark will complete a review and verification of the Refinery’s TAB

and Subpart FF compliance. CountryMark’s Phase One review and verification process shall

include, but not be limited to:

a. An identification of each waste stream that is required to be included in the Refinery’s TAB (e.g., slop oil, tank water draws, spent caustic, desalter rag layer dumps, desalter vessel process sampling points, other sample wastes, maintenance wastes, and turnaround wastes (that meet the definition of waste under Subpart FF));


30

b. A review and identification of the calculations and/or measurements used to determine the flows of each waste stream for the purpose of ensuring the accuracy of the annual waste quantity for each waste stream;

c. An identification of the benzene concentration in each waste stream,

including sampling for benzene concentration at no less than ten (10) waste streams, consistent with the requirements of 40 C.F.R. § 61.355(c)(1) and (3); provided however, that previous analytical data or documented knowledge of waste streams may be used in accordance with 40 C.F.R. § 61.355(c)(2), for streams not sampled; and

d. An identification of whether or not the stream is controlled consistent with

the requirements of Subpart FF. 52. By no later than two (2) months after the completion of the Phase One review and

verification process, CountryMark shall submit to EPA and IDEM a Benzene Waste Operations

NESHAP Compliance Review and Verification Report (“BWON Compliance Review and

Verification Report”) for the Refinery that sets forth the results of Phase One, including but not

limited to the items identified in Subparagraphs 51.a–51.d.

53. One-Time Review and Verification of the Refinery’s TAB: Phase Two of the

Review and Verification Process. Based on EPA’s review of the BWON Compliance Review

and Verification Reports, EPA may select up to twenty (20) additional waste streams at the

Refinery for sampling for benzene concentration. CountryMark shall conduct the required

sampling and submit the results to EPA within two (2) months of receipt of EPA’s request, if

any. CountryMark shall use the results of this additional sampling to reevaluate the TAB and the

uncontrolled benzene quantity and to amend the BWON Compliance Review and Verification

Report, if and as needed. To the extent that EPA requires CountryMark to sample a waste

stream as part of the Phase Two review that CountryMark sampled and included as part of its

Phase One review, CountryMark may average the results of such sampling. CountryMark shall

submit an amended BWON Compliance Review and Verification Report within four (4) months


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following the date of the completion of the required Phase Two sampling, if Phase Two sampling

is required by EPA. This amended BWON Compliance Review and Verification Report will

supersede and replace the originally-submitted BWON Compliance Review and Verification

Report. If EPA notifies CountryMark that Phase Two sampling is not required, or if EPA fails to

seek additional sampling within four (4) months of EPA’s receipt of the originally-submitted

BWON Compliance Review and Verification Report, the originally-submitted BWON

Compliance Review and Verification Report will constitute the final report.

54. Amended TAB Reports. If the results of the BWON Compliance Review and

Verification Report indicate that the Refinery’s most recently-filed TAB report does not satisfy

the requirements of Subpart FF, CountryMark shall submit, by no later than four (4) months after

completion of the BWON Compliance Review and Verification Report, an amended TAB report

to IDEM. CountryMark’s BWON Compliance Review and Verification Report will be deemed

an amended TAB report for purposes of Subpart FF reporting to EPA.

55. Implementation of Actions Necessary to Correct Non-Compliance. If the results

of the BWON Compliance Review and Verification Report indicate that the Refinery has a TAB

of over 10 Mg/yr, CountryMark shall submit to EPA and IDEM, by no later than six (6) months

after completion of the BWON Compliance Review and Verification Report, a plan that

identifies with specificity: (a) the actions it will take to ensure that the Refinery’s TAB remains

below 10 Mg/yr for each calendar year thereafter; or (b) a compliance strategy and schedule that

CountryMark will implement to ensure that the Refinery complies with the 6 BQ compliance

option as soon as practicable but by no later than one year after submission of the plan.

56. Implementation of Actions Necessary to Correct Non-Compliance: Review and

Approval of Plans. Any plans submitted pursuant to Paragraph 55 shall be subject to the


32

approval of, disapproval of, or modification by EPA. Within two (2) months after receiving any

notification of disapproval or request for modification from EPA, CountryMark shall submit to

EPA and IDEM a revised plan that responds to all identified deficiencies. Unless EPA responds

to CountryMark’s revised plan within two (2) months, CountryMark shall implement its

proposed plan.

57. Implementation of Actions Necessary to Correct Non-Compliance: Certification

of Compliance. By no later than two (2) months after completion of the implementation of all

actions, if any, required pursuant to Paragraphs 55–56 to come into compliance with the

applicable compliance option, CountryMark shall submit a certification and a report to EPA and

IDEM that states that the Refinery complies with the Benzene Waste Operations NESHAP.

58. Annual Review. By no later than two (2) months after the Date of Entry,

CountryMark shall develop a program to annually review process and project information for the

Refinery, including but not limited to construction projects, to ensure that all new benzene waste

streams are included in the Refinery’s waste stream inventory.

59. CountryMark shall only use laboratories that are EPA accredited under EPA’s

National Environmental Laboratory Accreditation Program (NELAP) and certified under

NELAP to perform analyses of CountryMark’s benzene waste NESHAP samples to ensure that

proper analytical and quality assurance/quality control procedures are followed.

60. Benzene Spills. Beginning no later than Date of Entry, CountryMark shall review

spills to determine whether more than ten (10) pounds of aqueous benzene waste was generated

in any twenty-hour (24) hour period at the Refinery. CountryMark shall include the benzene

generated by such spills in the TAB for the Refinery.


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61. Training. By no later than two (2) months after the Date of Entry, CountryMark

will develop and begin implementation of annual (i.e., once each calendar year) training for all

employees asked to draw benzene waste samples at the Refinery.

62. Additional Training.

a. CountryMark shall comply with the provisions of Subparagraph 62.b if

and when the Refinery becomes subject to the 6 BQ compliance option.

b. CountryMark shall propose a schedule for training at the same time that

CountryMark proposes a plan, pursuant to Paragraph 55, that identifies the compliance strategy

and schedule that CountryMark will implement to come into compliance with the 6 BQ

compliance option. CountryMark shall complete the development of standard operating

procedures for all control equipment used to comply with the Benzene Waste Operations

NESHAP. Additionally, within three (3) months after the Refinery becomes subject to the 6 BQ

compliance option, CountryMark shall complete an initial training program regarding these

procedures for all operators assigned to this equipment. Comparable training will also be

provided to any persons who subsequently become operators, prior to their assumption of this

duty. Until termination of this Decree, “refresher” training in these procedures shall be

performed at a minimum on a three (3) year cycle.

63. Training: Contractors. As part of CountryMark’s training program, CountryMark

must ensure that the employees of any contractors hired to perform the requirements of this

Subsection V.H. are properly trained to implement all applicable provisions of this Subsection.

64. Waste/Slop/Off-Spec Oil Management: Schematics. By no later than two (2)

months after the Date of Entry, CountryMark shall submit to EPA and IDEM schematics for the

Refinery that: (a) depict the waste management units (including sewers) that handle, store, and


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transfer waste, slop, or off-spec oil streams; (b) identify the control status of each waste

management unit; and (c) show how such oil is transferred within the Refinery. CountryMark

shall include with the schematics a quantification of all uncontrolled waste, slop, or off-spec oil

movements at the Refinery. If requested by EPA, CountryMark shall submit to EPA and IDEM

within three (3) months of the request, revised schematics regarding the characterization of these

waste, slop, off-spec oil streams and the appropriate control standards.

65. Waste/Slop/Off-Spec Oil Management: Non-Aqueous Benzene Waste Streams.

All waste management units handling non-exempt, non-aqueous benzene wastes, as defined in

Subpart FF, will meet the applicable control standards of Subpart FF, if the TAB equals or

exceeds 10 Mg/yr.

66. Waste/Slop/Off-Spec Oil Management: Aqueous Benzene Waste Streams. For

purposes of calculating the Refinery’s TAB pursuant to the requirements of 40 C.F.R.

§ 61.342(a), CountryMark shall include all waste/slop/off-spec oil streams that become

“aqueous” until such streams are recycled to a process or put into a process feed tank (unless the

tank is used primarily for the storage of wastes). Appropriate adjustments will be made to such

calculations to avoid the double-counting of benzene.

67. Benzene Waste Operations Sampling Plans: General. By no later than two (2)

months after the BWON Compliance Review and Verification Report becomes final,

CountryMark shall submit to EPA and IDEM a benzene waste operations sampling plan

designed to describe the sampling of benzene waste streams that CountryMark will undertake to

estimate quarterly and annual TABs for the Refinery.


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68. Benzene Waste Operations Sampling Plans: Content Requirements.

a. Refinery’s TAB is under 10 Mg/yr. So long as the Refinery’s TAB is

under 10 Mg/yr, the sampling plan shall identify:

i. All waste streams that contributed 0.05 Mg/yr or more at the point of generation in the previous year’s TAB calculations; and

ii. The proposed sampling locations and methods for flow

calculations to be used in calculating projected quarterly and annual TAB calculations under the terms of Paragraph 71.

CountryMark shall take and have analyzed at least three representative samples according to the

following schedule: annually for all waste streams identified in Subparagraph 68.a.i; once per

calendar quarter for all locations identified in Subparagraph 68.a.ii.

b. Refinery’s TAB reaches or exceeds 10 Mg/yr. If the Refinery’s TAB

reaches or exceeds 10 Mg/yr—requiring CountryMark to implement the 6 BQ option under

Paragraph 50—the sampling plan shall identify:

i. All uncontrolled waste streams that count toward the 6 BQ calculations and contain greater than 0.05 Mg/yr of benzene at the point of waste generation; and

ii. The proposed sampling locations and methods for flow

calculations to be used in calculating projected quarterly and annual uncontrolled benzene quantities under the terms of Paragraph 71.

CountryMark shall take, and have analyzed, in each calendar quarter, at least three representative

samples from all waste streams identified in Subparagraph 68.b.i and all locations identified in

Subparagraph 68.b.ii.

c. Compliance Plan under Paragraph 55. If CountryMark must implement a

compliance plan under Paragraph 55, CountryMark may submit a proposed sampling plan that

does not include sampling points in locations within the Refinery that are subject to changes


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proposed in the compliance plan. To the extent that CountryMark believes that such sampling

will not be effective until CountryMark completes implementation of the compliance plan and by

no later than two (2) months prior to the due date for the submission of the sampling plan,

CountryMark may request EPA approval for postponing its submitting a sampling plan and

commencing sampling until the compliance plan is completed. EPA will not unreasonably

withhold its approval. Unless EPA provides its approval, CountryMark shall submit a plan by

the due date in Paragraph 67.

69. Benzene Waste Operations Sampling Plans: Timing for Implementation.

CountryMark shall implement the sampling required under each sampling plan during the first

full calendar quarter after CountryMark submits the plan for the Refinery. CountryMark shall

continue to implement the sampling plan (i) unless and until EPA disapproves the plan; or

(ii) unless and until CountryMark modifies the plan, with EPA’s approval, under Paragraph 70.

70. Benzene Waste Operations Sampling Plans: Modifications.

a. Changes in Processes, Operations, or Other Factors. If changes in

processes, operations, or other factors lead CountryMark to conclude that a sampling plan for the

Refinery may no longer provide an accurate basis for estimating the refinery’s quarterly or

annual TABs or benzene quantities under Paragraph 71, then by no later than three (3) months

after CountryMark determines that the plan no longer provides an accurate measure,

CountryMark shall submit to EPA and IDEM a revised plan for EPA approval. In the first full

calendar quarter after submitting the revised plan, CountryMark shall implement the revised

plan. CountryMark shall continue to implement the revised plan unless and until EPA

disapproves the revised plan.


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b. Requests for Modifications. After two (2) years of implementing a

sampling plan, CountryMark may submit a request to EPA for approval, with a copy to IDEM, to

revise the Refinery’s sampling plan, including sampling frequency. EPA will not unreasonably

withhold its approval. CountryMark shall not implement any proposed revisions under this

Subparagraph until EPA provides its approval.

71. Quarterly and Annual Estimations of TABs and Uncontrolled Benzene Quantities.

a. For as long as the Refinery’s TAB remains below 10 Mg/yr, at the end of each calendar quarter and based on sampling results and approved flow calculations, CountryMark shall calculate a quarterly and projected annual TAB for the Refinery.

b. To the extent that the Refinery’s TAB ever reaches or exceeds 10 Mg/yr,

CountryMark shall calculate a quarterly and annual uncontrolled benzene quantity for the Refinery.

In making one or the other of these calculations, CountryMark shall use the average of the three

samples collected at each sampling location. If these calculations do not identify any potential

violations of the benzene waste operations NESHAP, CountryMark shall submit these

calculations in the reports due under Section VIII of this Decree.

72. Corrective Measures: Basis. Except as set forth in Paragraph 73:

a. For as long as the Refinery’s TAB remains below 10 Mg/yr, CountryMark shall implement corrective measures at the Refinery if the quarterly TAB, calculated pursuant to Subparagraph 71.a, equals or exceeds 2.5 Mg, or the projected annual TAB, calculated pursuant to Subparagraph 71.a, equals or exceeds 10 Mg for the then-current compliance year; or

b. To the extent that the Refinery’s TAB ever reaches or exceeds 10 Mg/yr,

CountryMark shall implement corrective measures at the Refinery if the quarterly uncontrolled benzene quantity, calculated pursuant to Subparagraph 71.b, equals or exceeds 1.5 Mg or the projected annual uncontrolled benzene quantity, calculated pursuant to Subparagraph 71.b, equals or exceeds 6 Mg for the then-current compliance year.


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73. Exception to Implementing Corrective Measures. If CountryMark can identify

the reason(s) in any particular calendar quarter that the quarterly and projected annual

calculations result in benzene quantities in excess of those identified in Paragraph 72 and states

that it does not expect such reason or reasons to recur, then CountryMark may exclude the

benzene quantity attributable to the identified reason(s) from the projected calendar year

quantity. If that exclusion results in no potential violation of the Benzene Waste Operation

NESHAP, CountryMark will not be required to implement corrective measures under

Paragraph 72, and CountryMark may exclude the benzene attributable to the identified reason(s)

in determining the applicability of Paragraph 75. At any time that CountryMark proceeds under

this Paragraph, CountryMark shall describe how it satisfied the conditions in this Paragraph in

the reports due under Section VIII of this Decree.

74. Compliance Assurance Plan. If CountryMark meets one or more conditions in

Paragraph 72 (except as provided under Paragraph 73), then by no later than two (2) months after

the end of the calendar quarter in which one or more of the conditions were met, CountryMark

shall submit a compliance assurance plan to EPA for approval, with a copy to IDEM. In that

compliance assurance plan, CountryMark will identify the cause(s) of the potentially-elevated

benzene quantities, all corrective actions that CountryMark has taken or plans to take to ensure

that the cause(s) will not recur, and the schedule of actions that CountryMark will take to ensure

that the Refinery complies with the Benzene Waste Operations NESHAP for the calendar

compliance year. CountryMark shall implement the plan unless and until EPA disapproves.

75. Third-Party Assistance. If at least one of the conditions in Subparagraph 72.a or

Subparagraph 72.b (as applicable) exists at the Refinery in two consecutive quarters, then

CountryMark shall retain a third-party contractor during the following quarter to undertake a


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TAB study and compliance review at the Refinery. By no later than thirty (30) days after

CountryMark receives the results of the third-party TAB study and compliance review,

CountryMark shall submit such results and a plan and schedule for remedying any deficiencies

identified in the third-party study and compliance review to EPA and IDEM. CountryMark will

implement its proposed plan unless and until EPA disapproves after an opportunity for

consultation with IDEM.

76. Miscellaneous Measures. To the extent that the Refinery’s TAB ever reaches or

exceeds 10 Mg/yr, CountryMark shall implement the following measures from the time

CountryMark implements a strategy to comply with the 6 BQ compliance option until

termination of this Consent Decree:

a. Conduct monthly visual inspections of all Subpart FF water traps within the Refinery’s individual drain systems;

b. Identify and mark all area drains that are segregated stormwater drains; c. On a weekly basis, visually inspect all Subpart FF conservation vents on

process sewers for detectable leaks; reset any vents where leaks are detected; and record the results of the inspections. After two (2) years of weekly inspections, and based upon an evaluation of the recorded results, CountryMark may submit a request to EPA Region 5 to modify the frequency of the inspections. EPA shall not unreasonably withhold its approval. Nothing in this Subparagraph 76.c will require CountryMark to monitor conservation vents on fixed roof tanks. Alternatively, for conservation vents with indicators that identify whether flow has occurred, CountryMark may elect to visually inspect such indicators on a monthly basis and, if flow is then detected, CountryMark will then visually inspect that indicator on a weekly basis for four (4) weeks. If flow is detected during any two (2) of those four (4) weeks, CountryMark shall install a carbon canister on that vent until appropriate corrective action(s) can be implemented to prevent such flow.

d. Conduct quarterly monitoring of the controlled oil-water separators in

benzene service in accordance with the “no detectable emissions” provision in 40 C.F.R. §61.347; and


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e. Manage all groundwater remediation wastes that are covered by Subpart FF at the Refinery in appropriate waste management units under and as required by the Benzene Waste Operations NESHAP.

77. Reporting Requirements for this Subsection V.H: Outside of the Reports

Required under 40 C.F.R. § 61.357 or in the Semi-Annual Reports Required in Section VIII

(Recordkeeping and Reporting). At the times specified in the applicable provisions of this

Subsection V.H, CountryMark shall submit, as and to the extent required, the following reports

to EPA and IDEM:

a. BWON Compliance Review and Verification Report (Paragraph 52), as amended, if necessary (Paragraph 53);

b. Amended TAB Report, if necessary (Paragraph 54); c. Plan for the Refinery to come into compliance with the 6 BQ compliance

option upon discovering that its TAB equals or exceeds 10 Mg/yr through the BWON Compliance Review and Verification Report (Paragraph 55), or through sampling (Paragraph 58);

d. Compliance certification, if necessary (Paragraph 57); e. Schematics of waste/slop/off-spec oil movements (Para

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